Satyam promoters deny stake sale moves; to buy out Nipuna shareholders
By Rex Mathew | 19 Jan 2007
Promoters of Satyam Computers have once again denied any moves to sell their stake to any of the large global IT services companies. There have been persistent rumours for more than a year about the possibility of Satyam''s promoters exiting the company. The company and its promoters have consistently denied all such rumours and reports.
Global IT services major IBM was mentioned as the likely buyer in most of these reports. There have been many reports of IBM officials visiting Sataym''s Hyderabad campus and holding discussions with Satyam''s promoters. Some reports even claimed that IBM has already conducted a due diligence on Satyam. The fact that Satyam is the only frontline Indian IT services company where there is at least some possibility of the current promoters considering a sell-out gave credence to these reports.
"Sometime ago, there were rumors that Satyam was in dialogue with a large global SI (systems integrator) for being acquired. We had vehemently denied having considered such an option directly or indirectly ever in the past. Subsequently, there was speculation on the part of some analysts about shareholder value on account of acquisition of the company. We would like to take this opportunity to put to rest any such speculation in the future," Satyam chairman B Ramalinga Raju said in a statement.
"We firmly believe that enhancement in shareholder value is best when we continue to pursue the already successful global delivery model that we specialise in. Satyam, therefore, shall not indulge in any such pursuits of being acquired. We would continue to focus on aggressively expanding our business globally as an independent company", the statement added.
Satyam is planning to buy-out the minority shareholders in its BPO subsidiary Nipuna during the next financial year. "During the quarter, we have entered into a definitive agreement with the investors in Nipuna for redemption of 50 per cent of the preference shares held by them and the balance 50 per cent to be converted into equity shares. The agreement provides for Satyam to buy out their equity stake for a consideration in the range of $35 million to $45 million by May 2007", B Ramalinga Raju said in the statement.
